On the Call: Weyerhaeuser CEO Dan Fulton

Weyerhaeuser CEO Dan Fulton focuses on government policies that could affect his industry

• By The Associated Press
• On 2:18 pm EDT, Friday October 30, 2009

NEW YORK (AP) -- Companies that produce lumber, paper products and packaging face an array of possible government initiatives that could affect their bottom line and the fortunes of their shareholders.

While conference calls that follow companies' quarterly earnings reports typically focus on operational and financial issues, Weyerhaeuser's third-quarter call featured a departure from that format.

CEO Dan Fulton both opened and closed the meeting by focusing on emerging government policies.

He was careful to maintain a neutral tone throughout, but his remarks underscore just how concerned the industry is about what Washington may be up to.

"During the past year, we've seen the effect of the alternative fuel blending tax credit on our cellulose fibers results. Homebuyer tax credits, both at the federal level and in the state of California, have in some measure affected our real estate results," he said as he began the meeting.

"As we look ahead, there is some potential effect related to extension and possible expansion of homebuyer tax credits, of a new cellulosic biofuel producer tax credit, and potential tax credits related to the Biomass Crop Assistance Program, or 'B-CAP.' Longer term, we believe that climate and energy bills currently under debate in Congress could significantly affect how we manage and operate our extensive timberlands holdings.

"We're convinced of the inherent value that our sustainably managed timberlands hold as part of longer-term solutions to climate change, and the development of new sources of renewable energy. A mix of economics, science and politics will determine long term management of these resources.

"In addition to our focus on continuing improvement in operations, cost control, and financial position, we're also engaged in monitoring these public policy discussions, and influencing them where we can make a difference."

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